Consider the stocks in the following table. Assume a price-weighted index is formed by three selected stocks. Initially (at time t=0), the index contains stocks A, B, and C. In the last period (moving from t=1 to t=2) stock C is replaced by stock D.

	Time t=0		Time t=1		Time t=2
Stock	Price	Shares	Price	Shares	Price	Shares
A	90	100	95	100	95	100
B	50	200	45	200	45	200
C	100	200	110	200	---	---
D	---	---	---	---	20	500

a) What is the price of the index at time t=0?

b) What is the price of the index at time t=1?

c) What is the first-period (from t=0 to t=1) rate of return on the index?

d) What is the divisor of the index at time t=2?

e) What is the second-period rate of return (from t=1 to t=2) on the index?